My Blog

Postpone election to protect health and focus on people’s livelihood
Strive to create new jobs amid economic downturn

16 August 2020

Amid the still severe epidemic situation in Hong Kong, anti-epidemic work is most pressing. The Hong Kong Special Administrative Region (HKSAR) Government has therefore decided to postpone the seventh-term Legislative Council (LegCo) election for one year in accordance with the law so as to protect public safety and health and ensure an open, fair and just election.

The decision: constitutional, lawful, sensible and reasonable

As the permanent body of the highest organ of state power, the Standing Committee of the National People’s Congress (NPCSC) made a decision on the sixth-term LegCo of the HKSAR in accordance with the relevant provisions in the Constitution of the People’s Republic of China and the Basic Law. According to the NPCSC’s decision, the sixth-term LegCo is to continue to discharge duties for not less than one year until the seventh-term of office of the LegCo begins. After the latter is formed in accordance with the law, its term of office remains to be four years. This decision provides a constitutional basis and a solid legal foundation for the normal governmental administration of the HKSAR Government and the normal operation of society. Its authority and necessity are beyond doubt.

Contributing to social stability Focusing efforts in fighting the virus

Article 73 of the Basic Law stipulates that the LegCo shall exercise its important powers and functions to enact, amend and repeal laws, examine and approve budgets, as well as approve taxation and public expenditure. A prolonged lacuna in the legislature will be seriously detrimental to our governmental administration and social stability. To prevent this from happening, it is clearly stated in the NPCSC’s decision that the sixth-term LegCo will continue to discharge its duties. Letting all incumbent LegCo members continue their office will also minimise disputes.

Thanks to the staunch support of the country, the decision has effectively filled the legislative “vacuum” in the HKSAR, contributing to social stability with which the whole community may focus on fighting the virus, reviving the economy and improving people’s livelihood. The HKSAR Government is deeply grateful to the Central Authorities for showing sincere care and concern and giving utmost priority to the health and well-being of the citizens with due consideration to the overall interests and actual circumstances of Hong Kong society.

Hope for effective operation of the legislature with priorities to livelihood issues

Hong Kong is now faced with unprecedented difficulties and challenges. As the LegCo is meant for seeking the widest consensus through rational communication, its members have immense responsibilities to shoulder. As the saying goes, “co-operation will benefit both parties while confrontation serves the interests of neither”, this is invariably true for the executive-legislature relationship. To break the current deadlock, the collaborative efforts and support of LegCo members are utterly crucial. I sincerely call on all LegCo members to earnestly perform the statutory functions of the LegCo by joining hands in solidarity, putting aside prejudices and seeking common ground while accommodating differences for the best interests of our fellow citizens.

Last Wednesday (August 12), the Chief Executive and I, together with other Principal Officials, met with pro-establishment LegCo members from various political groups to exchange views on LegCo matters. They also took the opportunity to express grave concern about the latest epidemic situation and the support measures. The HKSAR Government will do its utmost to support enterprises and individuals in riding out the difficult times, and keep gauging opinions from different sectors to formulate concrete support proposals.

Multi-pronged approach to fight the epidemic

In response to the request of the HKSAR Government, the Central Authorities have spared no effort in providing prompt assistance in our anti-epidemic work. On ramping up our virus testing capacity, the Mainland nucleic acid test support team has commenced preparatory work, including setting up temporary air-inflated laboratories at Sun Yat Sen Memorial Park Sports Centre. Sixteen air-inflated labs are basically ready for use. With proper infection control measures in place to safeguard public health, the laboratories will by no means affect residents and the environment in the vicinity.

On establishing temporary treatment facilities, the HKSAR Government has planned to construct, with the assistance of the Central Authorities, a two-storey temporary hospital on an approximately 3.2 - hectare piece of land near AsiaWorld-Expo (AWE) in order to provide negative pressure wards with 800 to 1 000 beds and relevant medical equipment, thereby relieving the pressure on the demand for public hospital beds.

As regards community treatment facilities (commonly known as “mobile field hospitals”), the Hospital Authority (HA) has set up one with 500 beds in Hall One of AWE. Commissioned on August 1, the facility provides triage of confirmed cases and isolation for patients with mild symptoms and in stable condition. Meanwhile, the HA is preparing to expand such facilities to Hall Two. At the request of the HKSAR Government, the Central Government has urgently supplied beds and equipment to the HA while the Mainland’s mobile field hospital teams will offer professional advice and recommendations.

The upcoming Universal Community Testing Programme aims to identify as early as possible infected persons and asymptomatic patients to cut transmission chains in the community. Participation is voluntary and members of the public can receive a one-off COVID-19 test for free. All testing will be conducted in Hong Kong and specimens will be destroyed afterwards without being transported out of the territory. To help contain the local epidemic, and for the sake of your health as well as that of your family, friends, colleagues and the community at large, I appeal for your active participation in the programme.

Unemployment remains tough

Last Friday (August 14), the Government released the revised data on the Gross Domestic Product in the second quarter of this year and the latest economic forecast. The economy of Hong Kong saw a sharp year-on-year contraction of 9.0% in the second quarter. In view of the deep global economic recession and the third wave of local outbreak, the Government revised downward its economic contraction forecast for the year from 4% - 7% to 6% - 8%. I am particularly concerned about the latest local labour market situation.

The seasonally adjusted unemployment rate in April - June soared to 6.2%, the highest in more than 15 years. Unemployment figures in May - July will be announced on Wednesday (August 19). As the economic outlook is subject to unusually huge uncertainties, which put the labour market under further pressure, unemployment rates should remain on the high side in the near term.

A preliminary analysis by age, sector and skill segment showed that unemployment among youths with different levels of educational attainment and technical abilities varied markedly. Unemployment in sectors related to consumption, tourism and construction were more severe.

Higher unemployment rates among the younger and the older age groups

Analysed by age, unemployment rates of persons aged 15 - 24 and 25 - 29 surged to 14.6%, the highest in nearly a decade, and a record high of 7.8% respectively; while that of persons aged 50 - 59 and aged 60 and above rose to 6.8% and 5.9% respectively, both reaching the highest in nearly 15 years.

Business hardships faced by consumption- and tourism-related sectors

Analysed by sector, the consumption- and tourism-related sectors (viz. retail, accommodation and food services sectors) were still suffering immense hardships, with the unemployment rate combined edging up to 10.7%, the highest since August - October 2003 after the onslaught of SARS. Among these sectors, the unemployment rate for the food and beverage service activities was near the post-SARS high, at 14.7%. Amid the slowdown in construction activities, the unemployment rate of the construction sector shot up to 11.2%, the highest in nearly 11 years. As for the arts, entertainment and recreation sector and the warehousing and support activities for transportation sector, the unemployment rates went up to a record high of 10.8% and 7.9% respectively, with the latter being the highest in over 13 years.

Unemployment more common among the lower-skilled

Analysed by skill segment, the unemployment rate of lower-skilled workers surged to 7.3%, the highest in over 15 years. Similarly, the less-educated was more hard hit in terms of unemployment. The unemployment rates of persons with educational attainment of primary and below and of secondary level went up to 7.4% (the highest in over 13 years) and 7.2% (the highest in over 15 years) respectively.

Family income plummeted substantially

The economy slipped into recession in the past year, resulting in massive job losses. Less working hours, no-pay leave and even pay cuts also impacted the income of many families. The median monthly household income (excluding foreign domestic helpers) plummeted by 10.2% year-on-year in nominal terms, the largest decline in 17 years. As the lowered-skilled or the less-educated segments are among the most vulnerable in the deteriorating labour market, the current economic downturn has dealt the greatest blow to grass-roots families.

Creating jobs proactively

In view of the severe unemployment situation, the HKSAR Government has launched job creation measures under the Anti-epidemic Fund to proactively create around 30 000 time-limited jobs for people with different skill sets and academic qualifications as well as young people. The Government will also create more than 10 000 civil service positions in the hope of addressing the pressing needs of those who have lost their jobs or due to join the job market within a short span of time.

Altogether 21 700 posts have been planned so far, with 13 700 to be created in various government departments and around 8 000 in non-governmental sectors. 2 500 new recruits have reported for duty to date and recruitment of another 7 500 posts is underway.

Among the posts to be created in the non-governmental sector, around 3 000 will be provided under various subsidy schemes launched by the Development Bureau, the Environment Bureau and the Financial Services and Treasury Bureau. The creation of other posts in the non-governmental sector is in the pipeline.

The Government should not be the sole job provider. Rather, the huge private market has a more important role to play. Through various measures such as providing subsidies for enterprises under the Employment Support Scheme, the Government has rendered support for enterprises and individuals to pave the way for a quicker economic recovery and a fresh start for Hong Kong.